Rental Car Loss Of Use

    Posted by MAIA on Aug 16, 2019 12:01:00 AM


    This question was answered based upon current rules, regulations & statutes in effect on July 19, 2019

    I was advised to reach out to you for your help.  I had a customer who stopped in yesterday to get a copy of his auto policy because he is traveling and will be renting a vehicle.  He was advised that he did not need to purchase the loss of use coverage because a MA policy must cover this.  I have attached the screen shot from Budget, the rental car company he is using, below.   Can you please help me better navigate this as I was under the impression MA auto policies do not cover loss of use.


    Thank you for your help,


    Irene Morrill: I am stunned that some fool at Budget put that together – especially capitalizing MUST.

    Under the 2008 MAP if one knew exactly what to say one could get loss of use covered …but you had to know exactly what to say and unfortunately w/in the last year some rental place suing Commerce …didn’t and screwed that up with a MA court case.

    Under the 2016 MAP there is stronger but new language suggesting that loss of use will NOT be paid. 

    There is no law requiring a company to provide this coverage.  The National PAP does cover loss of use in the “transportation expense” coverage but in MA our Sub trans only covers the “your auto” designated on dec page.

     This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: 2018

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